Texas comptroller's 'executive orders' called 'internal housekeeping' as election nears

Don Huffines has issued four directives targeting online marketplace taxes, medical record fees, Flock cameras and DEI spending; his challenger says he is 'cosplaying' as governor

By LineZotpaper
Published
Read Time4 min
Texas Comptroller Don Huffines has issued four directives he calls executive orders that would rewrite state rules on online marketplace taxes, medical record fees, Flock surveillance cameras and spending on diversity programs. Experts and his Democratic challenger say the orders are really internal rulemaking dressed up to amplify the appointed incumbent's profile weeks before the November 3 election.

Texas Comptroller Don Huffines has signed four directives he calls executive orders in the past month, using a label usually reserved for chief executives while directing his own agency staff to begin formal rule changes. Brandon Rottinghaus, a University of Houston political science professor, said the orders do not supersede legislative policymaking or governor's orders, likening them to agency memoranda or directives. "He's trying to amplify the nature of these orders," Rottinghaus said. "This is really internal housekeeping more than anything."

Huffines' office did not respond to a list of questions or an interview request about why the directives bear the executive order label.

The first order, signed in late September, directs staff to propose a rule change exempting fees charged by online marketplaces such as eBay and Amazon from the state's data processing tax. Sellers on those platforms pay the tax, from restaurants selling food on DoorDash to vendors selling crafts on Etsy, and the comptroller's office said customers also bore the cost. "This puts tens of millions of dollars annually back in the pocket of Texas families and small businesses," Huffines said as he held up a jumbo printed version of the order. "There will be a lot more coming."

The proposed rule change has been published in the Texas Register, the state's weekly journal of agency rules. The office acknowledged the change would reduce state general revenue but argued it would benefit the public "by reducing costs and uncertainty for businesses." Huffines said: "Ending this tax isn't a cost to government because this money never belonged to the government. You cannot lose what was never yours."

A legislative attempt to make similar changes stalled earlier this year. Rep. Angie Chen Button, a Garland Republican, introduced House Bill 1681 to exclude certain services from the tax; it drew praise at a committee hearing from small business owners and online retailers such as Expedia but never advanced. The Legislative Budget Board estimated the bill would cost the state millions of dollars in revenue, a calculation Button called "misinformation." After Huffines' directive, Button wrote on social media: "Glad to see momentum behind this effort to make Texas taxes fairer."

The later orders follow the same approach. The second, announced Oct. 6, targets a tax charged when a patient or doctor requests medical records. The third, announced Oct. 13, would ban state grant money from funding Flock surveillance cameras, in line with a late-August executive order from Gov. Greg Abbott halting state funding of the technology. The Texas Tribune has reported that one state agency devoted some $30 million to the state's Flock network through grants to local police departments. The fourth order, issued last week, requires state contractors and grantees to assure the state no part of their work involves diversity, equity and inclusion programs; the document itself had not yet been posted online. Huffines' office called it "the latest in a series of new standard terms" being written into contracts and grants "to protect taxpayers and enforce Texas law," and teased more to come.

The orders arrive less than five weeks before Election Day, where Huffines faces Democratic nominee Sarah Eckhardt, a state senator from Austin. Appointed by Abbott in August, Huffines has fired dozens of staff, upended the agency's structure and campaigned on promises to "DOGE the state" without having yet won a general election. A recent University of Texas at Austin Texas Politics Project poll placed Huffines one point ahead of Eckhardt, within the margin of error.

Eckhardt said Huffines, who unsuccessfully challenged Abbott in the 2022 Republican primary, is "cosplaying" as governor. "We don't have two governors. We have one," she said, listing the comptroller's duties, including keeping contract procurement processes above board. "These are important jobs of the comptroller but he doesn't seem interested in those jobs. He's fixated on having governor-like powers."

Rottinghaus noted the approach has precedent. Bob Bullock, perhaps the office's best-known former occupant, similarly leveraged administrative rules to control how businesses calculated taxes and reported franchise taxes. The orders also help Huffines establish a record as an incumbent, Rottinghaus said, as he pitches himself to voters.

Early voting is underway through Oct. 30. Election Day is Nov. 3.

§

Analysis

Why This Matters

  • The dispute is over how much power a comptroller actually has. If the changes succeed through agency rulemaking, they could cut state revenue, shift who pays taxes on online sales and redirect grant spending without a vote of the Legislature.
  • The race is effectively tied in the latest poll, so the directives could help decide which party controls the office for the next four years.
  • The episode could signal whether state officials can use rulemaking to advance policy that stalled in the Legislature.

Background

The Texas comptroller is the state's chief tax collector and revenue estimator. Its revenue calculations instruct the Legislature's budget drafting every two years, and the office administers programs including a new $1 billion private school voucher program. Huffines was appointed by Gov. Greg Abbott in August and has run the agency on a cost-cutting agenda, campaigning on promises to "DOGE the state."

Comptrollers have used administrative rules to shape policy before. Bob Bullock, a former occupant of the office, leveraged rules to control how businesses calculated taxes and reported franchise taxes. Huffines' directives tell agency staff to start the formal rulemaking process required by state law, a path that includes publication in the Texas Register and public comment.

Key Perspectives

Comptroller Don Huffines: Casts the directives as taxpayer protection and says the marketplace tax change "puts tens of millions of dollars annually back in the pocket of Texas families and small businesses." His office frames the DEI measure as new standard contract and grant terms "to protect taxpayers and enforce Texas law," and promises more orders to come.

Sarah Eckhardt, Democratic nominee for comptroller: Says Huffines is "cosplaying" as governor: "We don't have two governors. We have one." She argues the appointed incumbent is fixated on governor-like powers while neglecting core duties such as keeping contract procurement processes above board.

Political scientists: Brandon Rottinghaus of the University of Houston says the orders are "really internal housekeeping more than anything" that do not supersede legislative policymaking or governor's orders, and that Huffines is amplifying their nature to build a record as an incumbent.

Small businesses, online retailers and legislators: Small business owners and companies such as Expedia backed similar legislation in committee, and Rep. Angie Chen Button welcomed the comptroller's move after her own bill stalled. The Legislative Budget Board estimated such a change would cost the state millions of dollars in revenue.

What to Watch

  • The Nov. 3 election, with early voting underway and the latest poll showing Huffines one point ahead, within the margin of error.
  • Whether the proposed marketplace tax rule survives the formal rulemaking process, which includes public notice and comment.
  • Whether further "executive orders" arrive before Election Day, and whether any are challenged in court or by the Legislature for exceeding the comptroller's authority.

Sources

Zotpaper

Written by June Katz on the World desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

1 sourcefirst published
Meet the newsroomHow we workSubscribe